its fullest, we need to have ready cash at our disposal. Everyone encounters unexpected or

unforeseen financial crisis at some point of time. Personal loans then become the financial

saviour for average Joes. Personal loans can also be used to fulfill medical or educational

expenses, weddings and home renovation costs. In addition, it can also be used to repay your

bills and consolidation of debts.

Personal loans are multipurpose interest-based debenture loans that are can be used for

business, as well as domestic purposes. There are no restriction as to its usage, therein lies

its greatest advantage. Christmas being round the corner, you can use personal loans to buy your

dream car or designer duds. The choice is yours.

Traditionally, Personal

Loans are classified into secured and unsecured personal loans. If collateral is furnished

as security, then it can be typified as a personal secured loan. On the other hand, unsecured

personal loans do not require any collateral. Simple process, large loan amount, flexible

payments and longer repayment periods are some of the pros of Personal loans.

On the basis of the repayment terms and conditions, personal loans are classified into the

following categories:

• Installment loans
  
• Balloon loans
  
• Single payment loans
  

Depending on your financial condition, you can opt for any one of these repayment options.